Nova Royalty Corp (CVE:NOVR) (OTCMKTS:NVARF) has brought in $5,587,686 gross proceeds following an earlier announced warrant acceleration exercise and completed its deal to increase its royalty interest on the Taca Taca copper-gold-molybdenum project in Argentina to 0.42%.
The Vancouver-based royalty company already owned a 0.24% royalty interest in First Quantum's world-class Taca Taca asset and in January this year, revealed it would acquire a further combined, existing 0.18% net smelter return (NSR) royalty.
READ: Nova Royalty set to buy existing royalty on Chile copper project; increases debt facility with Beedie Capital
For the 0.18% interest, Nova said it would pay 4.5 million shares worth a total of US$13 million and pay a cash fee upfront of US$3 million to First Quantum. Additionally, Nova will make additional cash payments totaling US$4 million once commercial production starts at Taca Taca.
If Nova shares were greater than C$1.00 or C$1.25 each for 20 consecutive trading days at any time after the issue date of the warrants, they could be accelerated and as of January 8 this year, around 5.9 million warrants had yet to be exercised, the group had reported.
Nova Royalty is focused on providing investors with exposure to the key building blocks of the clean energy revolution, namely copper and nickel.
Contact the author at giles@proactiveinvestors.com